BERLIN, Dec 30 - Germany's GfK market research company said on Tuesday its consumer climate indicator for January was unchanged on the month as consumers remained cautious about prospects for the economy and their incomes. However, GfK said its survey of 2,000 consumers was carried out before the government and opposition parties agreed tax cuts and welfare reforms on December 15, and the underlying trend in sentiment was still up. "Now the relevant decisions have been taken, the outlook for a further slight improvement in consumer sentiment remains intact," GfK said in a statement. "However, a convincing and lasting recovery will only materialise when there is some more positive news from the labour market," it added.
GfK's forward-looking consumer climate indicator for January, derived from the December survey, was unchanged on the month at 5.5 after December's reading was revised down slightly from 5.7. That was above a reading of 4.3 in January 2003 but less than half the level it was in January 2002, when euro notes and coins were launched. Consumers' willingness to buy dipped in December to minus 32.2, the lowest level since August, remaining well below its long-term average of zero. The component has not been in positive territory since December 2001. "Consumer sentiment is moving sideways at the moment," GfK wrote.||